FERC issues policy statement on hydro licensing settlements

Font Size: A | A | A

FERC issues policy statement on hydro licensing settlements

By: John Seebach  Thursday September 21, 2006
Region: National
Key Words: FERC | settlement

Two very important things happened at FERC's open commission meeting this week.

First, the Commission welcomed three brand-new commissioners: Philip Moller, Marc Spitzer, and Jon Wellinghoff. This marks the first time that FERC has had its full complement of five Commissioners since the Commission's 1997-2000 term. FERC had been operating with three commissioners after former Chairman Pat Wood resigned at the end of his term in June 2005, and had even briefly dropped to a commission of two after Nora Brownell's departure this summer. We welcome the new commissioners and wish them the best during their tenure.

At the meeting, the Commission also unveiled its new policy statement on hydropower licensing settlements (read FERC's press release). There has been growing concern -- and frustration -- among licensing stakeholders over FERC's treatment of comprehensive settlement agreements. In many cases, FERC has issued licensing orders and environmental impact documents that undermine or flatly contradict settlement terms that took parties years to negotiate. Parties (including the Coalition, which rated a mention in Chairman Kelliher's statement) complained about the resulting confusion and uncertainty, prompting FERC to develop this new guidance.

Thanks in large part to Commissioner Moller and the other new commissioners, FERC has invited the public to submit written comments on this policy. Comments are due on November 11, 2006, and can be filed using FERC's electronic filing system, referencing docket number PL06-5-000. See the text of the policy statement for more details.

The Hydropower Reform Coalition will be submitting detailed comments, and we encourage our members and others with hydro licensing settlement experience to submit comments as well. Alternately, you are welcome to send us your thoughts so that we can incorporate them into our comments.